USEC accuses foreign rivals of dumping
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12/7/2000

USEC Inc.- the only producer of enriched uranium in the U.S.- charged two European competitors with illegally selling nuclear power plant fuel in the nation's markets at prices below production costs.

According to the Wall Street Journal, USEC (Bethesda, MD) recently asked the U.S. Department of Commerce and the U.S. International Trade Commission to investigate Urenco and Eurodif for allegedly taking business away in 1998 and 1999 with below-cost pricing.

"I think that any review will demonstrate that their complaints are unfounded," Mike McMurphy, president of Cogema-the parent company of Eurodif-told the Journal.

Cogema and Eurodif are both based in Paris and controlled by the French government. Urenco-based in London-is a consortium of British, Dutch and German companies and government agencies. Urenco refused to comment.

James A. Schoettler Jr., assistant general counsel for USEC, describes the company's market share in the U.S. in recent months as "way down" and claims the reason lies with the "practices these companies have engaged in. They've taken a number of contracts and materially injured us."

Schoettler said USEC, which at first believed this decline in market share to be caused by "natural competitive forces," conducted an inquiry and concluded that the two European companies were underbidding USEC by selling below cost. A current glut of uranium across the world has depressed nuclear power plant fuel prices to record low levels.

Until recently, USEC-privatized by the U.S. government in 1998-controlled 70% of the U.S. market for enriched uranium fuel. In its petitions, the company asked the government to investigate alleged illegal dumping and, if proved, USEC wants the U.S. to impose duties on future imports of uranium fuel to remove what it perceives as an unfair trade advantage.

Edited by April C. Murelio, Managing Editor, Power Online